XN000022-1995-01-18 — Page 42

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Public liability insurance being examined by Travel Industry Council

Following is a question by the Hon Fred Li and a reply by the Secretary for Trade and Industry, Mr T H Chau, in the Legislative Council today (Wednesday):

Question:

There are at present quite a number of travel agents who have not taken out "public liability" insurance policies for their package tours. This often gives rise to problem in determining the responsibility for compensation in the event of an accident. Tourists on such tours are also not given adequate protection. In this connection, will the Government inform this Council of the following:

Reply:

(a)

(b)

Mr President,

what immediate contingency measures and short-term solution does the Government have to tackle the problem in view of the approaching peak tourist season during the Lunar New Year; and

whether the Government will, in the long term, consider introducing legislation requiring travel agents to take out "public liability" insurance policies for their package tours; if not, what the reasons are?

In reply to part (a) of the Honourable Member's question, we have discussed with the Travel Industry Council and the Consumer Council possible ways to improve protection for outbound travellers, in particular the need for insurance coverage for both outbound travellers and travel agents.

The Travel Industry Council has accepted in principle that travel agents should take out public liability insurance to protect their clients, and has appointed an ad hoc committee to consider possible options. The committee aims to submit its recommendations to the Travel Industry Council next month.